In a move that could have far-reaching effects on the state's economy, Mississippi lawmakers are currently considering a major overhaul of the taxation system. The proposed changes, which were introduced during a legislative session on February 21, 2026, aim to streamline the tax code, promote economic growth, and reduce the burden on individual taxpayers.One of the key components of the proposed overhaul is a reduction in the state's individual income tax rates. Lawmakers are looking to lower the tax rates across all income brackets in order to provide relief to Mississippi residents and make the state more attractive to businesses and investors. Additionally, the proposed changes would eliminate certain deductions and credits, simplifying the tax filing process for individuals and businesses.In addition to individual tax reforms, the proposed overhaul also includes changes to the state's corporate tax system. Lawmakers are considering lowering the corporate tax rate to make Mississippi more competitive with neighboring states and encourage businesses to invest and expand within the state. The proposed changes would also eliminate certain loopholes and incentives that critics argue have benefited larger corporations at the expense of smaller businesses.If passed, the proposed tax overhaul is expected to have a significant impact on the state's budgetary outlook. Proponents of the changes argue that the reforms will stimulate economic growth, create jobs, and ultimately generate additional revenue for the state. However, critics have raised concerns about potential revenue losses and the impact on state services and programs.The proposed tax overhaul has already sparked contentious debate among lawmakers, with supporters highlighting the potential benefits of the reforms and opponents expressing reservations about the potential consequences. As the legislative session continues, Mississippi residents and businesses will be closely watching to see how the taxation system evolves and how it will affect their wallets and the state's economy.